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Manitowoc (MTW) Q2 Earnings Miss Estimates, '24 View Down

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The Manitowoc Company, Inc. (MTW - Free Report) reported adjusted earnings per share (EPS) of 25 cents in second-quarter 2024, missing the Zacks Consensus Estimate of 58 cents. The company reported an EPS of 75 cents in the year-ago quarter.

Including one-time items, the company reported an EPS of 4 cents in the quarter compared with the prior-year quarter’s 57 cents.

Manitowoc’s revenues moved down 6.8% year over year to $562 million in the quarter under review. The top line missed the Zacks Consensus Estimate of $603 million. Favorable changes in foreign currency translation rates had an impact of $2.7 million on revenues.

Orders in the reported quarter decreased 22.2% year over year to $428 million. The backlog at the end of the quarter was $836 million.

The Manitowoc Company, Inc. Price, Consensus and EPS Surprise

 

The Manitowoc Company, Inc. Price, Consensus and EPS Surprise

The Manitowoc Company, Inc. price-consensus-eps-surprise-chart | The Manitowoc Company, Inc. Quote

Operational Update

Cost of sales moved down 3.6% year over year to $462 million in the reported quarter. The gross profit was down 18.9% year over year to $100 million. The gross margin was 17.7% in the reported quarter compared with 20.4% in the prior-year quarter.

Engineering, selling and administrative expenses decreased 4.5% year over year to $84 million. Total operating costs and expenses were $87 million in the quarter compared with the $89 million reported last year. 

Adjusted operating income was $20.6 million in the quarter, down from $45.5 million in the prior-year quarter. Adjusted EBITDA in the reported quarter was $36 million compared with $60 million in the prior-year quarter. The adjusted EBITDA margin fell to 6.4% from the year-ago quarter’s 10%.

Financial Update

Manitowoc reported cash and cash equivalents of $38 million at the end of the second quarter of 2024, up from $34 million at the 2023 end. The long-term debt was $406 million at the end of the quarter under review, up from $359 million at the 2023 end. The company generated $11 million of cash in operating activities in the second quarter of 2024 against a cash outflow of $17.2 million in the last-year quarter.

Outlook

Manitowoc expects revenues of $2.175-$2.225 billion for 2023, down from the previously stated $2.275-$2.375 billion. Adjusted EBITDA is anticipated between $125 million and $140 million, down from the $150-180 million mentioned earlier. The adjusted EPS is expected between 45 cents and 90 cents, whereas the company previously stated 95 cents to $1.55.

Price Performance

In the past year, MTW shares have lost 38.2% against the industry’s growth of 14.7%.

 

Zacks Investment Research
Image Source: Zacks Investment Research

 

Zacks Rank

Manitowoc currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performances of Other Manufacturing Stocks

Caterpillar Inc. (CAT - Free Report) reported second-quarter 2024 adjusted earnings per share of a record $5.99, which beat the Zacks Consensus Estimate of $5.53 by a margin of 8.3%. The bottom-line figure marked an 8% year-over-year improvement.

The company reported second-quarter revenues of $16.69 billion, which missed the Zacks Consensus Estimate of $16.76 billion by a slight margin of 0.4%. The top line was 3.6% lower than the year-ago quarter as favorable price realization was offset by lower volumes, reflecting changes in dealer inventories.

H&E Equipment (HEES - Free Report) reported earnings per share of 91 cents, which missed the Zacks Consensus Estimate of $1.00. The bottom line marked a 20% decline from the year-ago quarter. 

Revenues improved 4% year over year to $376.28 million, missing the Zacks Consensus Estimate of $389 million. Rental revenues rose 6.5% from the year-ago quarter primarily due to the ongoing expansion of HEES’ branch network.

Terex Corporation (TEX - Free Report) reported second-quarter 2024 adjusted earnings per share of $2.16, which beat the Zacks Consensus Estimate of $2.03. The bottom line fell 8.1% from the prior-year quarter.

Revenues in the reported quarter dipped 1.5% year over year to $1.38 billion, missing the Zacks Consensus Estimate of $1.42 billion.


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